OECD Cutting World Growth Forecast

Created: 2013-05-30 09:16 EST

Category: World > Europe

The recession-hit euro zone will fall further behind a generally improving United States and a rebounding Japan this year, the OECD said on Wednesday, cutting its global growth forecasts.

The United States was seen driving global growth with the world's biggest economy projected to expand 1.9 percent this year and then accelerating to 2.8 percent in 2014, which would be the country's best rate since 2005.

In contrast, the euro zone was estimated to remain in recession for a second year. The OECD sees its economy contracting 0.6 percent in 2013 and then returning to growth next year with a rate of 1.1 percent.

[Angel Gurria, OECD Secretary General]:
"Today we're still confronted with an outlook that remains weak and a recovery that continues to be hesitant and uneven across countries and regions. There are some encouraging signs coming from a pick-up in activity in the United States."

After years of debt crisis testing the euro zone's capacity to hold together, the think tank commended the steps already taken across the OECD to consolidate public finances.

[Angel Gurria, OECD Secretary General]:
"It is also true that we have gone through several painful years of public tightening, but it is also true that precisely thanks to these efforts, many countries need only limited additional adjustment to put their public finances back on track."